New cars sell for less than second-hand

USED saloons, SUVS and luxury cars are selling for more than new ones due to the ongoing disruption to the supply of new vehicles, according to online car marketplace Motorway.

Tom Leathes, Motorway’s chief executive and founder, explained the component shortages suffered by automotive manufacturers since the pandemic have hit production levels and availability, which has forced people to look at the used market.

He explained that rather than join manufacturers’ waiting lists, people want to be certain they will actually get their new vehicle.

“The premium segment is buoyant because there is no supply of new cars, which means you often see used models selling for more than new ones,” Leathes said. “It’s happening frequently now, even in mid-price cars such as SUVS and saloons.” He added that the fledgling second-hand electric vehicle market is being boosted by the introduction of clean air zones across the country, as well as the Government’s upcoming ban on the sale of combustion engine vehicles in 2030.

“Electric is 100 per cent the future,” he said. “It is probably around 3-4 per cent of the secondhand market but in two years I would not be surprised if it was 15 per cent.”

Motorway matches people looking to sell their cars with more than 5,000 professional car dealers, who bid on the vehicles. It facilitated the sale of more than £1.7billion worth of used cars last year and is on track to beat that this year. It says on average, users make £1,000 more on the sale of their cars than traditional methods.